M&A Integration Processes and Issues
In M&A It is essential to avoid damaging the value of the deal. It is therefore essential to be patient and plan and build your processes. My experience has shown that the most common problems are related to people – how they react to change, their resistance to it, and how they react when something doesn’t go as planned.
One of the main tasks we provide to our clients is to assist them in setting up a process that allows them to recognize potential issues early and respond to them quickly. That can mean for instance, having a weekly meeting during which the IMO and functional work streams evaluate progress against the plan and escalate risks and issues to the SteerCo.
Once the method of addressing issues has been established, it is important to concentrate on implementation. This means ensuring that the team knows what it’s expected to accomplish and how it will be measured, and when. It’s also important to clearly define accountability (i.e. ownership of the final results) and decision-making authority for the entire integrated business.
It is essential to ensure that the CEO and senior management are able to devote at minimum 90 percent of their time on essential business matters and avoid being distracted by integration tasks. It is recommended to choose a leader who can manage the Decision Management Office and coordinate work streams. This could be a person from the acquiring organization, or it can be a rising star within the merged company that has the backing of their boss to make this commitment.
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